Palestinian ambassador: Not surprised by vote

JULIA Gillard has been forced to abandon her personal opposition to Palestinians winning a seat in the United Nations – despite threatening to exercise a prime ministerial veto and demand Australia reject the bid.

The backdown headed off an ugly stoush in Labor caucus that threatened to deliver a fresh blow to Ms Gillard’s political authority over backbench demands Australia recognise Palestine as just one step short of a fully fledged nation.

Israel is fiercely opposed to the move – expected to be put in a formal resolution on Thursday in New York – and Ms Gillard had insisted to cabinet colleagues that Australia would also vote against it.

Ms Gillard had previously nominated support for Israel as a key foreign policy priority and last year overruled former foreign minister Kevin Rudd, directing Australia reject Palestinian membership of the UN cultural body, UNESCO.

But during a heated cabinet debate on Monday night, at least 10 ministers, including several from the Right faction, warned Ms Gillard she faced a caucus revolt should Australia vote against Palestinians winning an equivalent standing to the Vatican in the General Assembly.

Labor’s longest-serving foreign minister, Gareth Evans, also made a direct intervention over the issue, travelling to Canberra on Monday to warn MPs that Australia would be ‘‘on the wrong side of history’’ by opposing the Palestinian bid and would lose credibility for its hard-won UN Security Council seat.

Despite a tradition of staunch support for Israel from the Right, Labor’s already precarious prospects in western Sydney electorates with a high concentration of people of Middle Eastern backgrounds was a key factor requiring a more balanced approach to the Israel-Palestinian conflict.

NSW ministers Bob Carr, Tony Burke and Chris Bowen were among those who argued against Ms Gillard, saying the best course was for Australia to sit on the fence and vote neither for nor against the resolution.

The cabinet meeting ended with a pledge to support Ms Gillard’s final position, but after an intense night of canvassing colleagues, a compromise was struck about 9.30 on Tuesday morning, moments before the caucus meeting was to begin.

Ms Gillard told colleagues the government would abstain in the vote, despite her belief allowing Palestinians a greater voice in the UN would not advance peace talks with Israel.

The United States has signalled it will oppose the bid, though the overwhelming majority of countries are expected to support it.

Izzat Abdulhadi, of the Palestinian delegation in Canberra, said he was satisfied with the decision not to reject the bid, despite not winning Australia’s support. ‘‘There is a huge pressure on Australia from the United States ... there is also a close relationship between Australia and Israel and a strong Jewish community here who also lobby the Australian government,’’ he said.

Israeli officials are understood to be seething over Ms Gillard’s decision, only a day after Israel’s ambassador, Yuval Rotem, said he expected Australia would vote against.

The embassy declined to comment.

Michael Danby, Labor MP for Melbourne Ports and a staunch supporter of Israel, was said to be heavily bruised by the stoush after pushing for Australia to reject the Palestinian bid.

He declined to discuss the issue but released a statement saying the ALP had long maintained support for a two-state solution, but did not support the current UN process, ‘‘which is why we have agreed to abstain on the vote’’.

‘‘The aspiration of Palestinian statehood is an important one. However, it must be achieved as part of a process that delivers peaceful co-existence with Israel, in direct negotiations with Israel,’’ Mr Danby said.

The opposition said Labor’s position was a mistake and risked giving succour to the militant Hamas, which governs Gaza.